Friday, May 4, 2012


Ten Year Review of University Inc.

Running the University, he [President Bruininks] has observed, is remarkably similar to running a large, for-profit corporation, however different the end products may be.

(See p. 2 of the 2003 U of M Annual Report entitled Minding the Business of the University.)



Fiscal Yr
Long Term Debt
Operating
Expenses
Costs of Admin
Tuition & Fees
State
Approps
2011
1,145,419
2,886,024
193,997*
634,042
623,300
2010
956,364
2,900,389
234,308
576,303
651,350
2009
953,372
2,902,268
228,337
590,648
707,806
2008
824,753
2,741,009
196,686
547,874
743,987
2007
796,200
2,532,176
137,982
519,791
645,619
2006
632,947
2,366,018
125,690
494,999
616,445
2005
666,951
2,201,238
108,902
463,417
573,392
2004
664,954
2,098,030
116,481
407,631
577,648
2003
775,598
2,117,739
118,340
348,675
642,711
2002
719,273
2,000,156
103,656
293,127
684,693

(Numbers in thousands of dollars)


*  In 2011 the cost of administration decreased $24.5 million due to reduced royalty payments to inventors.  See p. 12 of the 2011 report.

There are trends that are clear from even a cursory review--substantial increases in long term debt, operating expenses and costs of administration together with skyrocketing tuition that has more than offset the reduction in state appropriations (by a wide margin). 
The day of reckoning is approaching:
The University has a limited capacity to absorb additional debt and operating costs from new capital projects.
See p.68 of the March 9, 2012 Board of Regents report on the Six Year Capital Plan.
For more on the emergence of the modern corporate university see The Cost of "Top Talent" Part III  and University Inc. Part II.
 
Michael W. McNabb
University of Minnesota B.A. 1971; J.D. 1974
University of Minnesota Alumni Association life member


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